FCF Yield
Higher than 67% of Technology sector peers
Updated 217h ago
Sector Performance
67th percentileSAP
4.8%
Sector Median
2.7%
Sector Avg
2.0%
Deep Analysis
SAP's current Free Cash Flow (FCF) Yield of 4.8% means that for every $100 invested in the stock, the company generates roughly $4.80 in cash from operations after subtracting capital expenditures—a measure of how much cash return an investor gets relative to the share price.
This yield stands above the sector median of 3.2%, placing SAP in the 66th percentile among its Technology peers, indicating it offers a higher cash return than most competitors. The FCF Yield has been increasing over the last eight quarters, with a quarter-over-quarter rise of +2.1% (year-over-year change is not available), showing a consistent upward trend in cash generation efficiency. The combination of an above-median yield and a rising trend suggests the stock currently offers an attractive cash return with improving fundamentals, potentially reducing downside risk and creating an opportunity for value-oriented investors. This metric directly supports the overall BULLISH verdict, as a high and increasing FCF Yield is a positive signal of financial health and shareholder value creation.
Frequently Asked Questions
What does the FCF Yield tell investors about SAP?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
How does SAP's FCF Yield compare to its sector?
SAP's FCF Yield of 4.8% compares to a Technology sector median of 2.7%, placing it in the 67th percentile.
Who are SAP's closest peers by FCF Yield?
The closest Technology peers by FCF Yield include: KLIC (1.5%), IAC (1.5%), AVGO (1.5%), DDOG (1.4%), SMTC (1.2%).
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
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4.8%
Sector Median
2.7%
Sector Avg
2.0%
How SAP's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.